Archives for posts with tag: Manhattan luxury apartment

Hi,

Another quarter and another record breaking set of numbers for Manhattan and Brooklyn real estate.

The boom of the luxury and super high end condos have pulled the average price of a Manhattan apartment to an all-time high $1.81M and also helped trigger a rise in inventory with the sales commencements of several high profile New Developments across the borough.

Brooklyn also gets its share of records with the average price per square foot breaking a 7-year high to reach $704/sf. The historically low inventory has risen over the last quarter but in proportion far from the levels that a market requires to reach equilibrium.

In addition to the traditional Corcoran Manhattan and Brooklyn market reports, this newsletter will touch base on the current relationship between Manhattan inventories, price level and the effect of New Developments in the borough. To follow, the impact of Global Wealth and its potential contribution to New York Real Estate along with the consequences of China’s economy will present data that could help developers keeping their cool in regards to the rise in super high end properties hitting the market. Finally, Brooklyn’s alarming lack of inventory may show a swift in current developers’ strategy to anticipate a change of plans and bring more products for sale quicker than expected to feed a demand starved of choices.

I truly hope that this newsletter will be beneficial and informative while shaping your future real estate plans. Please feel free to contact me should you want to consult on your real estate projects.

Cheers,

Q2_2015_Newsletter

Advertisements

HI,

I hope you are having a great start of 2015 and wish you great health and success for this exciting new year!

2014 has seen several records shattered in many market segments and locations. A recap of the Manhattan Q4 2014 report is bringing new insight about what moved the market over the past 12 months with some perspective on the current level of inventory.

With the upcoming of about 6,500 new units on the market (almost 50% already in contract), I also found it necessary to talk about the concept of New Developments, explain what they are, and which segments of the market they’ll be affecting in the next year.

Finally, Brooklyn’s sellers’ market is becoming more and more challenging to navigate with a highly competitive pool of buyers, increasing prices, low inventories, and only a few New Developments scheduled to hit the market. (Brooklyn Q4 2014 included)

I truly hope that this newsletter will be beneficial and informative while shaping your future real estate plans. Please feel free to contact me should you want to consult on your real estate projects.

Cheers,

Q4_14_Newsletter

The area below Chambers street defined as the Financial District has experienced a tremendous transformation since the 9/11 attacks, which plunged the area into darkness for almost a decade. Subsequently, the residential, commercial and retail booms have revived the area with more to come.

In the early 2000’s, the area attracted renters in quest for a better bang for their bucks. The 24/7 full service doorman building lifestyle has its perks and despite the limited nightlife options at the time, the 10 subway lines available within 5 min walk from wherever you stand in the Financial District allow residents to quickly exit and be in the hottest nightlife spots or commute to work within minutes. Then, the real estate boom brought top of the line condominiums to the neighborhood such as 20 Pine Armani Casa, which was the first cross marketing condo development pairing a fashion designer with residential real estate. It was and still is a success.

The commercial landscape changes happen upon the 2008 financial crisis when the neighborhood witnessed many firms closing their offices, downsizing or simply relocating. Similar to the residential boom, non-typical Wall Street companies in need of more space for their money started to migrate to the area and enjoy class A building near a major transit hub. Ad agencies, tech and media firms among others have now replaced financial firms. The new World Trade Center also anchored a major tenant Condé Nast acting as a snowball effect since most of his midtown located vendors are now looking to move near the new headquarters. Proximity remains an important factor to maintain efficient relationship.

The retail has been the biggest challenge and is now seeing the expansion this area needs in order to become an all-star venue for locals and visitors. As mentioned in my May 8th 2014 Blog, Brookfield place along with the gallery under the Oculus will bring the most prestigious fashion brands and eateries to satisfy a demanding local clientele who often have to shop outside their neighborhood to find quality products.

With so much going on, real estate developers have been able to move forward with stalled projects by securing additional funding, that precedent events froze. Luxury condos are already in the area, but ultra luxury are not…yet. With land prices fetching $900 to $1000/sf and development costs reaching the $600-$800/sf for a decent product, a developer starting a project with these constraints would have to sell at $3,000/ft to see the risks worth the reward. To create a better spread one could look at either searching for a cheaper acquisition or reducing construction costs. The latter one is harder to handle with rising labor and material costs that a developer can’t always control. The first one is where developers can get creative and search for alternatives (i.e: cheaper) sites to build in, on or upon. It is definitely worth the challenge – keeping in mind the high demand for ultra exclusive and luxurious New York Real Estate. We can find a good illustration of this strategy by looking at Alchemy Properties project involving the Woolworth Building.

woolworth_condos_09 Woolworth_Overall2_MGa

IMG_Woolworth Lobby 886_2 Woolworth Lobby Woolworth_Interior1 woolworth-building_views   

Located at 233 Broadway, the Woolworth building is a National and New York City historic landmark designed in the neo-gothic style by Cass Gilbert and built in 1913. It consists of about 58 stories reaching 792ft (241 meters) in heights that earned it the title of the tallest building in the World from 1913 to 1930. In 1998 the building traded hands for $137.5M to a partnership of Witkoff Group and Cammeby’s. Most recently, Alchemy Properties bought the top 30 floors totaling 106,000sf for $68M, or just about $640/ft. The price point is great, but the quality and uniqueness of the product acquired is even greater. The site is classified National landmark, boasts original and historical details that traditional new developments can’t replicate. Looking at the unit mix below, the development will offer 34 units (33 + 1 Penthouse).

Woolworth_Unit_Mix WoolworthCoverPhoto

The average ppsf excluding the penthouse is expected to fetch around $3,440/ft. The crown jewel will be the 8 level (Floor 50th-58th) Penthouse dubbed the Pinnacle (see floor plan below). The Penthouse is asking over $11,000/sf or $110,000,000, one of the priciest listing to ever hit the Manhattan market. The plans currently show the Penthouse as a 3-bed 3-baths with 3 powder rooms. The more than 4,700sf contains between the 50 and 51st floor will host the dining and living rooms. The subsequent floors will be arranged to have media room, library and an observation deck among other luxury features. Naturally, a private elevator will help navigating this 8-story sky-high mansion.

November 2013 Newsletter

September 2013 Newsletter

In the frenzy of the new luxury condominium buildings’ wave that recently hit the market, I’ll focus on those, which actually closed on transactions, and observe their relative success. 

Tribeca:

250 West Street: 

While making the headlines for having Leonardo DiCaprio checking on a $42 million Penthouse, 250 West has been doing great with the highest volume of closed transactions in the first half of 2013. Out of the 93 units put on the market in September 2011, only 2 remain available: a $10.95 million three bedroom and the Penthouse. According to records, 250 West closed sales averaged $1,588/sf.

250WestStreet

Chelsea/West Village:

607 Hudson Street, the Abingdon: 

Celebrities and big numbers are often associated with top real estate developments, and 607 Hudson Street is no exception. Indeed, infamous hedge fund titan, Steven Cohen, acquired a $23.4 million maisonette in the building, and the Penthouse went for $10 million over asked to close at $29.8 million. Originally, the building was a 200-unit nursing home, and has been converted into 10 luxury units by Flank Development who acquired the building in 2011 for $33 million. One more unit is under contract, and so far the building accumulated sales reached $136 million.

abingdon

345 West 14th Street, 345Meatpacking:

Probably one of the most successful stories for new development this year, 345Meatpacking’s 37-unit building is sold out! The building should come to completion by the end of 2013 and the results beat most expectations. Indeed, earlier surveys from the brokers’ community speculated that the average price per square feet would fetch way below $2,000. However, closed sales in the building have averaged $2,067. The site was bought and developed by DDG in 2010.

 

345Meatpacking

Gramercy

18 Gramercy Park South

Location, Location, Location! Gramercy Park is somewhat considered as an oasis steps away from one of the densest area of Manhattan (Union Square). The ultra limited inventory available and the lack of new products to be developed in this specific area surrounding a private keyed accessible park only for the resident of Gramercy Park are fundamental drivers to sky-high prices for the latest luxury condominiums at 18 Gramercy Park South. The team behind the conversion of a former Salvation Army building into a 16-unit boutique high end condominium is no other than Zeckendorf Development and A.M. Stern Architects, well known for their outstanding achievement at 15 Central Park West. So far, $80.6 million in sales closed within the first 6 months of 2013 averaging $16.12 million for the five recorded sales. In addition, seven other units are under contract, including the $42 million penthouse purchased by the Houston Rockets’ owner Leslie Alexander. 

18GPSouth_outside

18GPSouth_bed